U.S. EPA Issues Engine Compliance Advisory and Enforcement Alert

The United States Environmental Protection Agency (U.S. EPA) Office of Enforcement and Compliance Assurance recently issued a Clean Air Act (CAA) Compliance Advisory and Enforcement Alert for Stationary Engines.  In this alert, U.S. EPA notes taking numerous enforcement actions against owners and operators of internal combustion engines using fossil fuels that had excess emissions in violation of both New Source Performance Standards (NSPS) 40 CFR Part 60 Subparts IIII and JJJJ and National Emissions Standards for Hazardous Air Pollutants (NESHAP) 40 CFR Part 63 Subpart ZZZZ.  The most serious violations were those where existing engines were not retrofitted with the required air pollution controls and where testing was not conducted according to the rule requirements.  U.S. EPA also notes that overburdened communities are particularly negatively impacted by demand response engines which operate in the summer to offset electricity demand. This is yet another indication of the significance of Environmental Justice in U.S. EPA’s investigative focus and enforcement priorities.

Stationary Engines burn fossil fuels such as diesel and natural gas and are used to generate electricity, provide primary and back-up power, and power equipment such as compressors or pumps.  The aggregate industry, data centers, landfills, and water and wastewater treatment facilities are large users of internal combustion engines. These engines are regulated by several federal regulations and rule requirements are complex, based on engine age, size, fuel type, and use.  Determining your engine subcategory is an essential first step towards compliance.  U.S. EPA engine rules include:

• 40 CFR Part 60, Subpart IIII – NSPS for Stationary Compression Ignition Engines
• 40 CFR Part 60, Subpart JJJJ – NSPS for Stationary Spark Ignition Engines
• 40 CFR Part 63, Subpart ZZZZ – NESHAP for Reciprocating Internal Combustion Engines

The cost of non-compliance can be steep with penalties of up to $109,024 per day per violation for noncompliance with the Clean Air Act (CAA) under 42 U.S. Code 7413(b).  U.S. EPA provides several tools to assist with navigating the matrix of engine regulations including requirement spreadsheets for each rule by subcategory.  A self-assessment targeting engine assets is one strategy to identify potential compliance issues. U.S. EPA and some states such as Texas have audit policies and programs for self-disclosure.  These policies can significantly reduce penalties and potentially avoid recommendation for criminal prosecution.  A regulated entity has 21 days from the time of discovery to disclose the violation in writing to the U.S. EPA via the eDisclosure system.

If you have any questions regarding this enforcement alert or compliance with U.S. EPA’s stationary source engine rules, please contact Jenny Brown at jbrown@all4inc.com or Terry Darton at tdarton@all4inc.com.